Other Private Equity/Strategic Investments
Saudi Arabia's SALIC buys 9.2% stake in basmati rice exporter LT Foods for Rs.456-Cr
Saudi Agricultural Livestock and Investment Co. (SALIC) is to acquire a 9.22% equity stake in publicly listed basmati rice exporter LT Foods through a primary and secondary investment of INR 455.5 crore. LT Foods will make a preferential issuance of 27,408,164 equity shares (equivalent to a 7.89% equity stake) at INR 142.23 per share, aggregating to about INR 390 crore, to SALIC. The investor will acquire another 1.33% equity stake through a secondary share purchase from the Promoters Group of LT Foods. The promoters of LT Foods will continue to hold a majority equity stake of 51% in LT Foods, post deal. In a related transaction, LT Foods will buy back a 29.52% equity stake in LT Foods subsidiary, Daawat Foods Ltd., from SALIC for INR 175.8 crore. (SALIC had acquired this stake in Daawat Foods in February 2020 through its subsidiary, United Farmers Investment Company). Post completion of the transaction, LT Foods will hold a 100% equity stake in Daawat Foods. Avendus Capital and Kotak Investment Banking acted as exclusive financial advisors to LT Foods and SALIC respectively. Additionally, AZB & Partners and Cyril Amarchand Mangaldas acted as the legal advisors to the seller and buyer respectively.
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